Hardware Firms Hit by Rising Memory Chip Costs | Open Interest 1/16/2026

Watch on YouTube ↗ | January 16, 2026 at 18:09 | 1:27:03 | Bloomberg Markets

Speakers

Dani Burger — Anchor, Bloomberg Television

Herman — Bloomberg Intelligence

Sarah Hunt — Chief Market Strategist, Alpine Saxon Woods

David Royal — Chief Investment Officer, Thrivent

Ethan — Moneta

Carmen Reinicke — Reporter, Bloomberg

Antoine Chkaiban — Equity Research Analyst, Technology Infrastructure, New Street Research

Vicky Peacey — Head of Content, CoinDesk

Bill Ford — Chairman, Ford Motor Company

Matt Miller — Anchor, Bloomberg

Mike Shepherd — Senior Editor, Bloomberg

Nathan Dean — Senior US Policy Analyst, Bloomberg Intelligence

Stephen Nichols — Bloomberg News

Summary

Bloomberg Open Interest focused on the memory chip boom, which is boosting memory makers but pressuring hardware firms like HP. Guests debated small-cap leadership, regional bank fundamentals, consumer resilience, energy as an AI picks-and-shovels play, and private-credit risks. Copper and AI supply-chain topics were also discussed, including Rio Tinto's Amazon copper deal and TSMC/Nvidia positioning. Washington policy talk centered on 401(k) housing withdrawals, credit card rate caps, and tariffs.

Memory chip prices and demand are creating clear winners and losers across hardware and AI supply chains.
Small caps have outperformed recently, with guests debating whether rate cuts and policy shifts can sustain the rally.
Regional banks reported mixed results but are seen as having a solid operating backdrop and consolidation potential.
Consumer names are favored by some guests on positive real wages and upper-end spending resilience.
Energy is framed as a picks-and-shovels AI trade, while private credit is flagged for less transparency and rising cracks.
Copper is viewed as structurally supply-constrained, with AI and electrification driving demand.
Washington policy watch includes 401(k) home down payment plans, credit card rate caps, and tariff litigation.
Porsche's sales slump and EV challenges were discussed, along with broader auto-sector pressures.

Ideas

Dani Burger Anchor, Bloomberg Television 0:59

Memory chips have pricing power.

Memory chip stocks have a favorable demand-supply imbalance, with strong demand and limited supply giving them pricing power; although they are getting expensive, momentum continues.

Herman Bloomberg Intelligence 8:24

Regional banks have strong operating backdrop.

Regional banks have a good operating backdrop with improving net interest income, accelerated loan growth, stable credit, and consolidation supported by faster regulatory approvals.

Bill Ford Chairman, Ford Motor Company 15:28

Ford builds and grows in America.

Ford is the most American automaker, adding jobs, growing share, with well-received products and a commitment to building in America; it is working through tariff advantage issues and hybrid battery sourcing.

Sarah Hunt Chief Market Strategist, Alpine Saxon Woods 24:39

Small caps benefit from policy shifts.

Small caps should benefit from policies that help U.S. companies and keep foreign competition out, plus positive reaction to rate cuts; the trade has continued to work.

Carmen Reinicke Reporter, Bloomberg 34:44

AI demand extends memory upcycle.

Memory chipmakers like SanDisk, Western Digital, Micron and Seagate are benefiting from AI-driven memory tightness and pricing power; AI capex may extend the cycle beyond normal, so the boom seems to continue.

Carmen Reinicke Reporter, Bloomberg 35:05

Memory costs pressure HP margins.

HP and other hardware buyers face margin pressure from rising memory costs; HP is already seeing a hit, and Apple could be affected down the road.

David Royal Chief Investment Officer, Thrivent 37:47

Rate cuts can lift small cap value.

Small caps are behaving rate-sensitively and need a couple of rate cuts to rally, which he expects; the small cap value ETF offers tax efficiency and liquidity.

David Royal Chief Investment Officer, Thrivent 39:47

SharkNinja wins with product innovation.

SharkNinja is an overweight because the upper-end consumer is doing better than the lower-end, it competes on product innovation, has strong R&D and margins, and competes with Dyson.

David Royal Chief Investment Officer, Thrivent 39:52

Consumer stocks supported by real wages.

He likes the trade into consumer stocks because the upper-end consumer is holding up better, real wages have been positive since June 2023, and fiscal/tax refund stimulus may help.

David Royal Chief Investment Officer, Thrivent 41:42

Boot Barn's niche avoids Amazon competition.

Boot Barn has a small niche, house brands not available elsewhere, and is less likely to be outcompeted by Amazon, with a denim revival supporting demand.

Ethan Moneta 47:18

Energy is an AI picks-and-shovels trade.

Energy is a classic picks-and-shovels trade adjacent to technology, with demand/supply driving returns; clean energy did well while oil lagged, and geopolitical headlines add volatility.

Ethan Moneta 51:16

Private credit cracks are appearing.

Private credit is a less transparent sector with cracks appearing; the bond market is too complacent, assets have grown to $3 trillion, corners have been cut, and due diligence has been scaled back.

Vicky Peacey Head of Content, CoinDesk 65:02

Rio Tinto's copper tech adds supply.

Rio Tinto's Resolution Copper/Nuton technology can unlock new copper supply from an existing resource; Amazon is the first customer, and the project could eventually supply 25% of U.S. copper demand.

Vicky Peacey Head of Content, CoinDesk 67:10

Copper faces structural supply deficit.

Copper faces a structural supply deficit because not enough new mines are coming online, while demand from AI, electrification, defense, and everyday products keeps growing; global mine disruptions worsen the problem and more supply is needed.

Antoine Chkaiban Equity Research Analyst, Technology Infrastructure, New Street Research 74:17

Memory stock multiples look concerning.

Memory stocks are in a tight HBM supply environment with gross margins approaching 70%, but market expansion cannot go much further, expectations already reflect it, and multiples are concerning; better opportunities exist elsewhere.

Antoine Chkaiban Equity Research Analyst, Technology Infrastructure, New Street Research 75:58

TSMC is a strong foundry play.

TSMC had a very reassuring print, is in a very strong position as a foundry, is exposed to the transformative OpenAI deal, and can beat expectations in coming years.

Antoine Chkaiban Equity Research Analyst, Technology Infrastructure, New Street Research 77:03

NVIDIA can pass memory costs.

NVIDIA's high selling price means memory is a relatively small share of its bill of materials, so it can likely pass on higher memory costs to customers and protect margins.

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This Bloomberg Markets video, published January 16, 2026, features Dani Burger, Herman, Bill Ford, Sarah Hunt, Carmen Reinicke, David Royal, Ethan, Vicky Peacey, Antoine Chkaiban discussing DRAM, KRE, F, IWM, SNDK, WDC, MU, STX, HPQ, Small cap value, SN, XLP, BOOT, XLE, BIZD, RIO, COPPER, TSM, NVDA. 17 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Dani Burger, Herman, Bill Ford, Sarah Hunt, Carmen Reinicke, David Royal, Ethan, Vicky Peacey, Antoine Chkaiban · Tickers: DRAM, KRE, F, IWM, SNDK, WDC, MU, STX, HPQ, Small cap value, SN, XLP, BOOT, XLE, BIZD, RIO, COPPER, TSM, NVDA